Poll: East Lansing Income Tax Proposal Lacking Support

Lansing Regional Chamber Urges Measure be Pulled from the November Ballot

The Lansing Regional Chamber of Commerce (Chamber) is calling on the East Lansing City Council to withdraw a proposal for a new city income tax from the November ballot. That request came after the Chamber released results of a poll that showed a clear lack of support among East Lansing voters for the income tax idea. The poll of East Lansing voters, conducted by Denno Research, shows just 41 percent of East Lansing voters are in favor of the income tax proposal, while 32 percent of voters are opposed. Those numbers strongly suggest the income tax plan has very little prospect of being approved.

“Historically, we know that proposals like this should have at least 50 percent support at this stage to have a chance to gain voter approval,” said Denno Research president Dennis Denno. “Especially when one considers that only 10 percent of East Lansing voters strongly support the income tax, you have to conclude the ballot proposal faces serious challenges.”

A previous survey conducted by the Chamber showed that 72 percent of Chamber members believe the city income tax is not necessary and 85 percent of those members are opposed to the new tax.

The East Lansing City Council has until the second week of September to withdraw the income tax proposal from the November ballot. In an August 14 letter to the East Lansing City Council, the Chamber urged the income tax proposal be pulled from the ballot and that all sides involved “work together to find solutions that are in the best interests of our community, economy, businesses and residents.”

“Michigan State University has indicated a willingness to provide additional support directly to the City of East Lansing in lieu of an income tax,” said Chamber president and CEO Tim Daman. “East Lansing City Council would be well advised to consider a resolution with MSU in moving forward so everyone involved can focus on creating a climate where businesses can succeed and help the city grow.”

Joe Ford, co-owner of Netvantage Marketing in East Lansing said the proposal will be a major hindrance to the city’s ability to recruit and retain top talent for companies of all sizes, including small entrepreneurial firms.

“There are many Netvantages across East Lansing and hopefully many more to be started and developed that would call the city home," said Ford. “However, imposing this income tax solution is not conducive to a strong, thriving business climate.”

The following is the actual wording and results from the Denno Research poll:
Do you think things in the City of East Lansing are moving in the right direction or moving in the wrong direction?

This proposal will: (ROTATE) create a 1% city income tax for residents working in the city and a half-percent for people who work in East Lansing but don't live in the city. (AND) lower property taxes by four mills.

Do you strongly support, support, oppose, or strongly oppose this proposal?

Total Support: 41%
Strongly Support: 10%
Support: 31%

Total Oppose: 31%
Oppose: 14%
Strongly Oppose: 17%
Don’t Know: 28%

(ROTATE) Proponents of the proposal state that this revenue is needed to fix roads, provide public safety, and fix East Lansing's long-term budget problems, and that the property tax reduction will be a bigger tax cut for residents.

Opponents of the proposal state that East Lansing is already one of the highest taxed cities in Michigan and that the income tax plan will discourage future economic investment, jobs and attracting and retaining young families to the city.

Do you strongly support, support, oppose, or strongly oppose creating a city income tax and lowering property taxes?

This was a survey of likely 2017 general election voters in East Lansing, MI conducted by Denno Research. 400 respondents were surveyed from August 12-15, 2017, with a margin of error of plus/minus 5 percent. The participation was stratified based on census data and past voter behavior. A screen was employed to include only those participants who said they intended on voting, either at the polls or by absentee ballot, in the November 2017 General Election. Numbers are rounded and may not equal 100 percent.

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The mission of the Lansing Regional Chamber of Commerce (LRCC) is to be the preeminent business advocacy organization in the Greater Lansing region by collaborating for economic growth, creating new opportunities for our members and upholding pro-business ideals through the advancement of sound public policy. More information about LRCC and its programs and services can be found on any of its social media platforms, including www.lansingchamber.org, Facebook, Twitter (@LansingChamber), Instagram (@LansingRegionalChamber), LinkedIn and YouTube.